The $3,000/Month Problem No One's Talking About in Terre Haute Restaurants
The $3,000/Month Problem No One's Talking About in Terre Haute Restaurants
A brutally honest look at what delivery apps are really costing local restaurant owners
The Wake-Up Call
You know that feeling when you check your bank account after what felt like your busiest week ever... and somehow there's less money than last month?
You're not imagining it. And you're definitely not alone.
I've spent the last 6 months talking to restaurant owners across Terre Haute, from the family pizza joint on Wabash to the upscale bistro downtown. The same story keeps coming up:
"We're busier than ever, but we're making less money than we did two years ago."
Here's why.
The Real Numbers (From Actual Terre Haute Restaurants)
Case Study #1: Mario's Family Pizza
- Average order: $38
- Daily app orders: 45
- Monthly app revenue: $51,300
- Commission fees: $15,390/month
- Owner's reaction: "Holy shit. I had no idea."
Case Study #2: Sawyer's Brewhouse
- Average order: $65
- Daily app orders: 28
- Monthly app revenue: $54,600
- Commission fees: $16,380/month
- Owner's reaction: "That's more than I pay in rent."
Case Study #3: Downtown Deli
- Average order: $24
- Daily app orders: 85
- Monthly app revenue: $61,200
- Commission fees: $18,360/month
- Owner's reaction: "I could hire two full-time employees with that money."
The Hidden Costs They Don't Tell You About
Everyone talks about the 25-30% commission. But that's just the beginning:
The Real Cost Breakdown:
- Base commission: 25-30%
- Payment processing: 2.3%
- Delivery fee (that you don't get): $2-4 per order
- Marketing fees: 2-15% (if you want visibility)
- Tablet/POS fees: $50-200/month
- Charge-backs and disputes: 1-3% of revenue
Total real cost: 32-45% of every order
The Terre Haute Reality Check:
If you're doing $8,000/week in app orders (pretty typical for established restaurants here), you're paying:
- Conservative estimate: $2,560/week = $10,240/month
- Realistic estimate: $3,200/week = $12,800/month
Why This Hits Terre Haute Harder
1. Lower Average Order Values
Our market doesn't support the $80+ orders you see in Indianapolis or Chicago. When your average is $35-45, every percentage point hurts more.
2. Seasonal Challenges
ISU students leave for summer. Caterpillar layoffs. Economic uncertainty. We need every dollar of profit to survive the slow months.
3. Limited Local Competition
With fewer restaurants, the apps can charge higher fees because they know you don't have many alternatives.
What Other Cities Are Doing (That We're Not)
Austin, TX: The 15% Cap
Austin passed an ordinance capping delivery fees at 15%. Restaurant profits increased 23% on average.
San Francisco: Fee Transparency
Restaurants must display total fees to customers. Order values increased 12% because customers understood the real cost.
Chicago: Direct Ordering Incentives
The city offers grants for restaurants to build their own ordering systems. 67% saw increased profit margins.
The Solutions That Actually Work
Quick Wins (This Month):
- Audit your current fees - Most restaurants accept the default rates without negotiating
- Optimize your menu for apps - Remove low-margin items, bundle high-margin ones
- Set app-specific pricing - It's legal and necessary for survival
- Track your real profit per order - Include ALL costs, not just commission
Medium-Term (Next 3 Months):
- Build your own ordering system - Even a simple website form beats 30% fees
- Create loyalty programs - Get customers ordering direct
- Partner with other local restaurants - Share delivery costs, negotiate better rates
- Focus on catering and large orders - Better margins, same delivery cost
Long-Term (6+ Months):
- Local delivery cooperative - Pool resources with other Terre Haute restaurants
- City advocacy - Push for fee caps like other cities have done
- Customer education - Help locals understand the true cost of convenience
The Terre Haute Restaurant Owner's Action Plan
Week 1: The Audit
- Calculate your true commission rate (use our calculator)
- Review your delivery app contracts
- Identify your most/least profitable menu items on apps
- Check what percentage of orders come from apps vs. direct
Week 2: Quick Optimizations
- Adjust app-only pricing (+15-20%)
- Remove or modify low-margin items
- Negotiate with your current platforms (yes, this works)
- Set up basic direct ordering (even just a phone line promotion)
Month 1: Customer Retention
- Create a loyalty program for direct orders
- Email/text marketing for existing customers
- Social media promotion of direct ordering benefits
- Partner with 1-2 other local restaurants for cross-promotion
Month 3: Independence Strategy
- Evaluate ordering system options
- Test local delivery partnerships
- Measure improvement in profit margins
- Plan for scaling direct orders
Real Talk: What This Means for Your Business
Let's say you're currently doing $12,000/month in app orders with a 30% commission rate.
Current situation:
- App revenue: $12,000
- Commission: $3,600
- You keep: $8,400
- Annual commission cost: $43,200
After implementing these strategies:
- Direct orders (50% of current app volume): $6,000
- Remaining app orders with negotiated 22% rate: $6,000
- Commission on remaining orders: $1,320
- You keep: $10,680
- Annual savings: $27,360
That's enough to:
- Hire a full-time employee
- Upgrade your kitchen equipment
- Actually take a vacation
- Build a financial cushion for slow months
The Bottom Line
Every month you wait to address this is another $3,000+ walking out your door.
The apps aren't going anywhere. But you don't have to accept their terms as gospel.
Other restaurant owners in Terre Haute are already making these changes. The question is: do you want to be ahead of the curve or playing catch-up?
What's Next?
This report is just the beginning. The real work happens when you start implementing these strategies.
If you want help creating a specific plan for your restaurant, or if you want to connect with other Terre Haute restaurant owners who are tackling this problem together, reach out.
We're stronger when we work together.
Questions? Thoughts? Horror stories about your own commission fees? I'd love to hear from you.
Contact: 463-271-8640 Follow-up: www.savvyordersystems.com
This report was compiled from interviews with 23 Terre Haute restaurant owners, industry data from 2024-2025, and analysis of delivery app terms and conditions. All case study names have been changed for privacy.
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